University of Melbourne Issues a 10-year Bond

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university bond

After successful bond issues by Western Sydney University (WSU) and University of Wollongong (UOW) late last year, the University of Melbourne is the first Australian corporate to issue a bond in 2021.

The 10-year fixed rate bond has a coupon of 1.97%p.a. and raised $150 million.

Despite being hit by covid related concerns, investors oversubscribed to both the WSU and UOW issues with about 30 investors in both transactions. Both issues raised $200 million.

[Also read: Roll Your Way to a Higher Yield]

All three bond issues are high quality and low risk and have credit ratings in the ‘AA’ range.

Australian Catholic University and Macquarie University have also issued bonds in the over-the-counter market.

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Elizabeth Moran
Elizabeth is a nationally-recognised independent expert on fixed income. She has more than 25 years experience in banking and financial institutions in Australia and the UK and has been published in every major Australian newspaper and investment website. Prior to becoming an independent commentator in 2019 she spent more than 10 years as the head of education and research at fixed income broker FIIG Securities. Prior to joining FIIG, Elizabeth worked as an Editor/Analyst for Rapid Ratings a quantitative credit rating agency. She also spent five years in London, three working as a credit rating analyst for NatWest Markets.

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